The cryptocurrency market is no stranger to volatility, and seasoned traders are always on the lookout for early warning signs of a reversal. One such signal—bearish divergence—is making headlines again, this time in relation to XRP, the well-known payments-focused altcoin. A prominent crypto strategist, known by the pseudonym Bluntz, has issued a stark warning: XRP may be poised for a significant correction, mirroring recent price drops seen in Bitcoin (BTC) and Solana (SOL).
With over 318,000 followers on X (formerly Twitter), Bluntz has built a reputation for timely and technically sound market analysis. His latest call centers on the XRP/BTC trading pair, which he says is showing a clear bearish divergence on the weekly chart—a red flag for traders monitoring momentum shifts.
Understanding Bearish Divergence in Crypto Markets
Bearish divergence occurs when an asset’s price reaches a new high, but a momentum indicator (such as the Relative Strength Index or MACD) fails to confirm it with a corresponding high. This disconnect suggests that buying pressure is weakening, even as prices climb, often signaling an impending reversal.
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In the case of XRP, Bluntz points out that despite recent price strength, the underlying momentum against Bitcoin is deteriorating. This is particularly concerning because similar signals preceded notable corrections in both BTC and SOL earlier in 2025.
XRP’s ABC Correction Pattern Unfolds
Bluntz applies Elliott Wave Theory, a popular technical analysis framework, to support his bearish outlook. According to this theory, markets move in predictable wave patterns: five waves in the direction of the trend, followed by a three-wave corrective phase labeled A-B-C.
He observes that XRP may currently be in the midst of such an ABC correction against the US dollar. Specifically, he identifies the recent price action as potentially forming a “complacency shoulder” at wave B—a pause that often lulls traders into false confidence before the final leg down.
“Looks increasingly like that was a complacency shoulder B wave on XRP in my opinion. If BTC and SOL taught me anything the last month, do not fade the weekly bear divs.”
This suggests that XRP could drop significantly to complete wave C of the correction. Based on his chart analysis, Bluntz projects a potential downside target near $1.00, which would represent a decline of over 50% from its current level.
At the time of writing, XRP is trading at $2.46, down from recent highs but still holding above critical support zones.
Historical Accuracy: What Happened with BTC and SOL?
Bluntz’s credibility stems not just from theory but from recent predictive accuracy. In January 2025, when Bitcoin surged past $100,000, he warned that the rally resembled a completed five-wave impulse pattern—typically followed by a correction. He later reinforced this view by highlighting a bearish divergence on Bitcoin’s monthly chart.
His caution proved prescient. BTC eventually pulled back, and as of now trades around $87,421—a sharp reversal from its peak.
Similarly, Bluntz flagged Solana’s weakening structure last month after it lost the crucial $220 support level**. Combined with a bearish divergence on the two-week chart, he concluded that SOL was entering a high-risk phase. Since then, Solana has dropped to **$144.78, validating his technical assessment.
These successful calls amplify the weight of his current warning on XRP.
Why XRP Could Be Vulnerable Now
Several factors make XRP susceptible to a deeper correction:
- Weak Momentum Against BTC: The XRP/BTC pair is losing steam, indicating that even if BTC stabilizes, XRP may underperform.
- Market Sentiment Shifts: Broader risk-off sentiment in crypto has impacted altcoins more severely than Bitcoin.
- Regulatory Uncertainty: Despite partial clarity from recent court rulings, XRP continues to face lingering regulatory scrutiny, which can dampen institutional interest.
Moreover, technical patterns suggest that the current rally may have been driven more by speculation than sustainable demand—making it prone to reversal when sentiment shifts.
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FAQ: Addressing Key Questions About XRP’s Outlook
Q: What is bearish divergence, and why does it matter for XRP?
A: Bearish divergence occurs when price makes higher highs but momentum indicators do not confirm them. It signals weakening buying pressure and often precedes price reversals. For XRP, this pattern on the weekly chart suggests a potential downturn could be forming.
Q: How reliable is Elliott Wave Theory in predicting crypto moves?
A: While not foolproof, Elliott Wave Theory provides a structured way to interpret market psychology and trend cycles. When combined with other technical signals—like volume and divergence—it can offer valuable insights, especially in trending markets like crypto.
Q: Could XRP really fall to $1.00?
A: While price targets are speculative, a drop to $1.00 aligns with completing an ABC correction pattern. This would represent roughly a 50% decline from current levels and isn’t unprecedented during strong corrective phases in altcoins.
Q: What should traders do if they hold XRP?
A: Traders should monitor key support levels and momentum indicators closely. Setting stop-loss orders or taking partial profits near resistance zones can help manage risk. Those waiting to enter might consider waiting for signs of stabilization before buying.
Q: Has Bluntz been right about other assets before?
A: Yes. His bearish warnings on Bitcoin above $100,000 and Solana after breaking below $220 were followed by significant corrections in both assets, enhancing his credibility among technical traders.
Q: Is this analysis a sell signal?
A: This is not investment advice. The analysis reflects technical observations and should be used alongside personal research and risk management strategies. Always conduct due diligence before making trading decisions.
Final Thoughts: Proceed with Caution
While XRP remains one of the most widely recognized altcoins due to its focus on cross-border payments and Ripple’s ongoing developments, technical signals are flashing caution lights. The combination of bearish divergence on higher timeframes and a potential Elliott Wave correction suggests that downside risks are rising.
Traders would do well to heed historical patterns—especially when they’ve been validated by recent market behavior in major assets like BTC and SOL.
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As always in crypto, volatility is guaranteed. Whether XRP follows through on this predicted drop or defies expectations will depend on broader market dynamics, investor sentiment, and unforeseen catalysts. But for now, one thing is clear: the warning bells are ringing.
Core Keywords: XRP, bearish divergence, Elliott Wave Theory, Bitcoin correction, Solana correction, crypto technical analysis, XRP price prediction, altcoin market outlook